Banks
The impact of SEPA on banks will be very significant. There will be major costs, and few benefits. A small number of European banks will embrace SEPA and seek to exploit opportunities. It is likely that the majority of banks will see SEPA as a costly compliance issue, and will seek to minimize costs.
The costs of payment services at high-street banks are very high, and typically exceed 25% of total operating costs.
The 2008 banking crisis is likely to limit the options for capital investment in bank systems. Banks must seek to improve efficiency of payments in order to reduce operating costs. Creative solutions will be required which may involve shared processing facilities, outsourcing, or even withdrawal of some services.
| Payment service currently used | Impact (Short-term) (1-2 years) | Impact (Long Term) (2-4 years) |
|---|---|---|
General | Potential for increased competition for customers, particularly multinationals | Increased competition spreading to all business sectors |
Financial | EU & Cap Gemini both predict large reductions in bank revenues. Major capital investment required at startup | EU & Cap Gemini both predict large reductions in bank revenues. Significant ongoing costs. Some analysts predict large efficiency improvements |
Clearing | EFT cross-border clearing enhanced SDD clearing infrastructure established Changes to card clearing - particularly debit card | Preparing for transfer of domestic EFT and Direct Debit clearings from national infrastructures to PEACH-compatible clearing |
Electronic Funds Transfer | Create and offer SEPA ETF | Migrate large number of EFTs to SEPA EFT |
Direct Debit | Create and offer SEPA DD | Migrate large number of EFTs to SEPA DD |
Credit Cards | Minor Changes | Minor Changes |
Debit Cards | Create and offer Sepa Card Framework (SCF) compatible card | Migrate large number of debit cards to SCF Card. |
IBAN & BIC | Increase familiarity of customers with IBAN & BIC | Prepare for changeover of all account numbering to IBAN & BIC |
Cheque | Gradual reduction in cheques processing | Accelerated reduction in cheques usage |
Consumer rights | Introduce new procedures to conform with Payment Services Directive |
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